Air NZ rights priced at a ‘complexity discount’

Air NZ rights priced at a ‘complexity discount’
Air NZ is raising $1.18b to fund its return to the skies. (Photo: Daniel Norris/Unsplash)
Dan Brunskill
Air New Zealand rights are trading at a significant discount to ordinary shares, likely because the complexity of the offer makes them less attractive to retail investors who are doing almost half of all rights trading.The 'efficient market hypothesis' is a popular model for thinking about how the share market works. It argues that investors collectively factor all available information into share prices and find the exact correct price for everything. But this doesn’t appear to be the case with Air NZ.At midday on Thursday,...

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